I posted a few days ago about GS demanding more collateral from AIG, thus making life hell for everyone else on the planet. It was all too obvious to the Non Reality Show Watching/No Head In the Sand crowd that Goldman and SocGen caused the AIG Fiasco demanding AIG pay up on bad CDS bets. Now I am not blaming GS and the French for AIG's troubles in general, but they did spread about 50 tons of salt on AIG's gaping wounds.
If you remember (in between Jerry Rice dancing on TV) Goldman Sachs got $5.9B and SocGen received $5.5B of the roughly $18.5B in collateral paid out of AIG in the 1 1/2 years years BEFORE the September bailout, These payments "helped' settle AIG's obligations on some ridiculous $62B in CDS Swaps that the FED magically removed from AIG's books after the rescue.
The subsequent drain of liquidity to GS and SocGen put AIG in a horrible position, thus rolling them into the governments grip. Thanks to Uncle Sam's backstop, nearly $10 Trillion of worthless assets were propped up.
The strange thing here is after this debacle, every sycophant on Wall Street is praising GS for seeing the potential problems and protecting themselves. Even the former St. Louis (Hate the Cardinals) Fed Governor William Poole bent over backward in his musings about GS...."It's not the responsibility of any private firm to determine what the public interest is - that is why we have government."
The take home message here folks is that Bill Poole and the band of Wall Street thieves he usually lunches with believe that precipitating the biggest financial collapse in history, GS was doing an admirable thing, and while making money for itself it put the fate of every other bank at the forced mercy of America's taxpayers.
What was the outcome:
1-Orchestrating the most devastating horrific global correction in equity prices ever.
2-Forcing Taxpayers to socialize bank losses.
3- Then switching to Bank Holding Company status, rolling all of their losses to December, a month they didn't consolidate in their 1st Qtr report, thus subsequently making earnings inflated.
4-From this the Wall Street thief machine was in full effect, rapid upgrades and positive talk about the dead financials lifted that index 100%, which precipitated a 40% bear market rally.
5- Which enabled GS, JP, and others paying back TARP (Something they needed desperately, even before raiding AIG), so they look like hero's being the first to do so.
MOST IMPORTANTLY
6- Guaranteeing its employees record bonus payments.
Everything on Wall Street is back to normal until the next and potentially final collapse.
Likely anticipated and once again monetized by Goldman, Thanks Bill Poole.
I have one question? What is Goldman Sachs shorting now at this very moment? What are they shorting so they can take full advantage of the next major meltdown at the expense of Joe Taxpayer?
Conspiracy theories are always abound when crisis' happen. This is not new. Goldman/JP are the one only ones left that can help out the govt, and they know it. They are holding the entire planet hostage. There is really nothing the administration can do.
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